Is Ripple becoming a bank good or bad for XRP?

Ripple has received conditional approval for a federal bank charter, opening the possibility of operating under the U.S. banking regulatory framework. If officially licensed, Ripple will become a federally regulated financial institution, fully complying with U.S. banking laws.

This move helps solidify Ripple’s position in cross-border payments and digital asset infrastructure within regulated financial markets. However, this license approval may not have an immediate or significant impact on the market value of XRP.

OCC Paves the Way for a Federal Bank License

The U.S. Office of the Comptroller of the Currency (OCC) has paved the way for Ripple to establish Ripple National Trust Bank. To gain full approval, Ripple must still meet all regulatory and operational requirements set by the OCC before the license is officially granted.

Even if approved, Ripple’s operational model will differ from traditional banks such as Bank of America or JPMorgan Chase. Trust banks are legally limited and cannot accept public deposits or offer general lending products like consumer loans.

Instead, Ripple National Trust Bank will focus on custody, payments, and digital asset management services. This distinction is significant.

A National Trust Bank:

Thus, Ripple is gradually becoming a closely regulated financial infrastructure provider.

Despite some limitations, this approval marks an important step in Ripple’s long-term strategic development. Unlike state-level money transfer licenses, which are geographically limited, a federal license allows Ripple to expand its operations across the entire United States.

This approval may influence overall market sentiment, but its core significance lies in developing infrastructure and promoting institutional acceptance in the long term, rather than creating short-term speculative demand for XRP.

CEO Brad Garlinghouse publicly acknowledged this decision, viewing it as a response to longstanding opposition from traditional banking lobby groups, which have historically opposed blockchain-based companies participating in the regulated financial market.